The last thing on your mind when you move to Oz is how to send money to Australia.
When we both arrived and picked the best bank account in Australia, we just did what we thought was the cheapest and best way to send money to Australia.
We both just transferred our hard earned savings using our trustworthy Irish bank account.
A few days later we smiled and said YAY let’s grab a drink our money arrived!
It sounds like a perfect story doesn’t it?
Unfortunately not, while enjoying a tasty ice cold beer with our friend who had been living in Australia for about six months, he asked us.
Just how did you send money to Australia?
Duh silly we just transferred money with our bank accounts in Ireland.
No way! You realise the banks take an extra 4-6+% on the exchange rate and you probably paid a sending or receiving fee right?
Yea but only like $30 to receive it each, sure how the hell else would we send money to Australia? Curiously looking at friend
A money transfer company! I used Currencyfair to send money to Australia and saved a fortune!
Anyway, without keeping this dialogue going and boring you, we quickly realised that banks are a complete rip off when you are sending money to Australia!
So why are they cheaper than banks?
Over the years we have used Currency fair to send money to Australia and to send money to Canada.
Hopefully, you are reading this before you made the same mistake as us.
But don’t worry even if you did there is still time to save money.
We will break it down, why it is the cheapest and best way to send money to Australia
It may seem complicated to use a money transfer service to send money to Australia, but it really isn’t
These are the steps for the best way to send money to Australia
- You set up an account(register with our link, and you also get the first five free transfer!)
- Send money into Currencyfair – Just do a bank transfer, and they use local banks, so you are sending from an Irish account to an Irish account or a UK bank account to a UK bank account etc.
- Exchange it – Depending if you are using $, £ or €’s
- Send to your new bank account in Australia and grab a beer.
- Boom you just saved a fortune on bank fees!
So how is it cheaper?! You still haven’t explained yourselves.
Okay okay, so when you are sending money with traditional banks, they take an average cut of 4 -6% on the exchange rate.
So for example, if you sent €5000 to Australia with your bank, you would pay an extra AU$229!
Yes, you read that right! At least that is what it is at the time of writing this.
See for yourself on their calculator here.
It doesn’t just end there because you are sending it from an international bank account.
You will likely have to pay either sending or receiving fees to send money to Australia.
We paid like $30 each just to get money into our new commonwealth bank account.
How much would we have saved sending money to Australia?
If only our friend had told us earlier, we would have saved over AU$300 between us.
We sent around €2500 each at the time.
That is a lot of extra beers we could have had! And for what?
After we registered with Currencyfair, we actually got money faster than when we sent money with our banks!
Alternatives to Currencyfair for sending money to Australia
As you can see we are pretty happy with Currencyfair, and over the years it has saved us $1000’s on bank fees(yes $1000’s!). That is how much money the bank is making haha.
These three are great and much better than banks!
But it’s up to you, check them out and make a decision :)
We are affiliated with these companies which means we do get a small commission at no additional cost to you. In fact, you will get additional savings by going through us.
What if I am sending larger amounts of money to Australia?
But guys, I need to send like $50k to Australia!
For whatever reason, there might come a time when you have to a larger amount of money to Australia.
Or if you have saved up your hard-earned pennies from a few years in Australia, then you might want to send it back home.
So what are you supposed to do?
By all means, Currencyfair is a great choice, but sometimes it is nice to speak to someone who can advise you on the rate, best time to trade and so on.
We have been recommending OFX since 2013. They are awesome and available 24/7.
We also have free transfers for life over $1000 if you register with this link.
Conclusion on the best way to send money to Australia
You came here looking for the best way to send money to Australia, and I hope this post has given you some insight into why banks are a complete rip-off.
- Banks = Bad! They take 4 -6% on the exchange rate and you likely will pay extra sending and receiving fees.
- Money transfer services = Good! As long as you use a reputable company like the ones we have used then life will be good.
- They still need to make money. On average they take around 0.25% on the exchange rate and use local banks, so NO sending or receiving fees. 0.25% vs 6%, we have a winner haha.
- Currencyfair – Up to 8x cheaper than banks! Sign up here and get your first five transfers for free.
- OFX – Amazing for larger transfers and if you need that personal touch. Sign up here and get free transfers for life over $1000.
- Transferwise – Just like Currencyfair really cheap for sending money to Australia
- HiFx – You may have heard of XE currency(we use their app all the time) well they bought them haha! Another great option for when you need to send money to Australia.
If you are moving to Australia soon why not pick up our moving to Australia ebook for only €8.99!
We have a whole host of additional info about moving to Australia on our Australia section.
You can read our other international money transfer guide here.
Thanks for reading and enjoy those extra few beers on us the next time you send money to Australia.
Steve and Sabina
P.S Don’t use banks! ;)